Orphaned Nephew Forced to Work Part-Time... Uncle Sentenced to Prison for Embezzling Mother's Life Insurance Payout

68.64 Million Won in Insurance Payout and 13.18 Million Won in Government Subsidies
Six-Month Prison Sentence for Embezzlement

An uncle who embezzled his teenage nephew's life insurance payout, which the nephew was supposed to receive after losing his parents, has been sentenced to prison.

According to the legal community on September 22, Judge Ji Hyesun of the Gwangju District Court's Criminal Division 5 sentenced Mr. A, a man in his 40s, to six months in prison on charges of occupational embezzlement. Mr. A, who was appointed as the minor guardian, was indicted for embezzling 13.18 million won in government subsidies and 68.64 million won in life insurance benefits due to his nephew, Mr. B, which he managed on the nephew's behalf.

While Mr. B was in high school, both his biological mother and stepfather passed away in succession, and he lost contact with his biological father. As a result, his uncle, Mr. A, was appointed as his legal guardian.

Mr. A managed 13.18 million won in basic housing allowance, basic living allowance, and educational benefits paid by the government for his nephew, as well as 68.64 million won in life insurance proceeds from Mr. B's mother, by transferring these funds to his own mother's account, who is also Mr. B's grandmother.

Orphaned, Mr. B had to work part-time every evening during high school to earn pocket money, but he never received any explanation from his uncle regarding his mother's life insurance payout. Mr. B only learned about the existence of the insurance money last year through the "Find Unclaimed Insurance Benefits" service.

During the trial, Mr. A claimed he had spent most of the insurance payout for the victim and the family and argued for his innocence, but the court found that Mr. A had acted with intent to embezzle.

The court determined that the amount spent on Mr. B's upbringing did not even reach the total amount of social security benefits paid to him. The total social security benefits paid to Mr. B amounted to 13.18 million won, but even when adding up all the pocket money, communication fees, housing costs, and high school expenses that Mr. A sporadically sent to his nephew, the sum did not exceed 13 million won.

The court stated, "Considering that the defendant gave 20 million won to his financially struggling sibling through a family meeting that excluded the victim, and used the rest for his mother's home repairs and living expenses, there is sufficient evidence to recognize the intent to embezzle the life insurance payout." However, the court also noted, "Although the defendant has neither properly acknowledged his wrongdoing nor made any effort to repay, the court took into account that he did play a certain role in supporting the victim when determining the sentence."